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Chip designer AMD's shares dropped by 4% in after-market trading after it released its earnings result for the third quarter of its fiscal year 2023. The results saw AMD post annual revenue growth in a sign that troubles in the semiconductor industry appear to be stabilizing. However, at the same time, the firm's revenue guidance was weaker than expected, leading investors to react and sell the stock after market hours. During Q3 2023, AMD earned $5.8 billion in revenue, translating into $0.70 in non-GAAP earnings per share, for a small 4% annual growth. However, AMD's GAAP EPS jumped by 350% to stand at 18 cents to a share over the year-ago quarter's 4 cents.
After immediately dropping to $94 in after-market trading following the earnings release, AMD's shares posted a slight recovery and were trading at $94.47 roughly an hour after its earnings release. A deeper dive into AMD's earnings report reveals that its gaming and personal computing products competed for growth. In this fight, client computing led the charge during the third quarter of 2023, as its revenue jumped by 42% annually to $1.5 billion.
On the flip side, AMD's gaming revenue, where it has to compete with NVIDIA, was down eight percent year over year. AMD said this was driven by "lower semi-custom sales," or products used in gaming consoles such as Sony Corporation's PlayStation 5 or the Nintendo Switch.
Sony sold 3.3 million PlayStation 5 units during the first quarter of its fiscal year 2023. The firm is heavily promoting its video game console for the holiday shopping season, as it aims to sell 25 million units in FY
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